Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.63	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.1%	15.8%

Tax rate	16.9%	18.4%
Debt/Equity ratio	1	1
Cost of debt	5.0%	5.0%

After-tax WACC	8.1%	9.9%


Selected WACC	9.0%

507960.BO WACC - Detailed calculations of Beta

		Debt/Equity		Unlevered
Peers	Company Name	ratio	Beta	beta

507960.BO	Gujarat Hotels Ltd	1.12	0.63	0.33
508664.BO	Best Eastern Hotels Ltd	0.11	0.29	0.27
509546.BO	Graviss Hospitality Ltd	0.01	0.22	0.22
526373.BO	Cindrella Hotels Ltd	0.09	0.85	0.79
526640.BO	Royale Manor Hotels and Industries Ltd	0.08	0.7	0.65
526755.BO	Velan Hotels Ltd	2.49	0.54	0.18
526761.BO	Howard Hotels Ltd	0.25	0.2	0.17
532124.BO	Reliable Ventures India Ltd	0.03	0.49	0.47
532145.BO	H S India Ltd	0.95	0.7	0.39
BLUECOAST.NS	Blue Coast Hotels Ltd	1.1	-0.29	-0.15
TGBHOTELS.NS	TGB Banquets and Hotels Ltd	0.58	0.87	0.59

	Low	High

Unlevered beta	0.27	0.39
Relevered beta	0.45	0.78
Adjusted relevered beta	0.63	0.85

507960.BO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 507960.BO:

cost_of_equity (13.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.